What are broad industrials ETFs?
Industrial companies make and move the physical goods an economy runs on: construction and farm machinery, aircraft and defense systems, power equipment, railroads and building services. This guide covers 14 US-listed ETFs that invest in them, and many own the same core names. Caterpillar and GE Vernova each appear in 9 of the 14 funds, RTX and Union Pacific in 8, and General Electric, Boeing and Deere in 7.
Most of the money sits in index funds that give bigger companies bigger weights. XLI tracks the Industrial Select Sector Index with 81 stocks. VIS (397 stocks) and FIDU (361 stocks, tracking the MSCI USA IMI Industrials 25/25 Index) reach further into smaller companies. IYJ's index counts payment networks Visa and Mastercard as industrials, and they are its largest holdings. EXI owns companies worldwide, including Siemens.
Other funds take different routes. RSPN gives each stock in the S&P 500 Equal Weight Industrials Index about the same weight. PRN follows a momentum index, FXR tracks the StrataQuant Industrials Index, PSCI holds small companies and SHPP tracks a global supply-chain index. HVAC, launched in February 2025, aims for long-term growth with 22 holdings rather than tracking an index. Three funds are short-term trading tools: DUSL seeks 3x and UXI 2x an industrials index's daily return, while SIJ seeks -2x and rises when the index falls.
Yearly fees (expense ratios) run from 0.08% for XLI to 0.99% for HVAC, and the middle fund charges 0.40%. FIDU (0.084%) and VIS (0.09%) cost nearly as little as XLI. The leveraged funds charge 0.95% to 0.97%. The money is concentrated: XLI, VIS, FIDU, IYJ and EXI hold 95% of the roughly $50.8 billion in these ETFs, and XLI alone holds about $34 billion.
Broad industrials ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 14 biggest broad industrials ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Caterpillar Inc | 9 of 14 | 4.91% |
| GE Vernova Inc | 9 of 14 | 3.48% |
| RTX Corp | 8 of 14 | 3.47% |
| Union Pacific Corp | 8 of 14 | 2.21% |
| General Electric Co | 7 of 14 | 4.92% |
| Boeing Co | 7 of 14 | 2.23% |
| Deere & Co | 7 of 14 | 1.95% |
| Uber Technologies Inc | 6 of 14 | 1.81% |
| Parker-Hannifin Corp | 6 of 14 | 1.61% |
| Lockheed Martin Corp | 6 of 14 | 1.55% |
| Howmet Aerospace Inc | 6 of 14 | 1.48% |
| Quanta Services Inc | 5 of 14 | 1.88% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad industrials ETFs, side by side
Swipe the table to see all 5 funds.
| XLI | VIS | FIDU | IYJ | EXI | |
|---|---|---|---|---|---|
| Net assets | $33.96B | $8.56B | $2.30B | $1.94B | $1.44B |
| Expense ratio | 0.08% | 0.09% | 0.08% | 0.37% | 0.38% |
| Holdings | 81 | 397 | 361 | 211 | 230 |
| In the 10 largest | 41.37% | 30.53% | 31.32% | 36.4% | 24.71% |
| Biggest holding | Caterpillar Inc (8.51%) | Caterpillar Inc (5.33%) | Caterpillar Inc (5.4%) | Visa Inc. (7.23%) | Caterpillar Inc. (4.8%) |
| Yield | 1.12% | 0.95% | 0.93% | 0.67% | 1.13% |
| 1-year return | +9.4% | +7.5% | +7.5% | +6.4% | +8.2% |
| 3 years, a year | +21.3% | +21.9% | +21.8% | +19.2% | +22.5% |
| 5 years, a year | +11.5% | +11.6% | +11.7% | +8.3% | +10.8% |
| Worst drop, past year | -12.2% | -12.5% | -12.3% | -11.4% | -12.3% |
| Launched | 1998 | 2004 | 2013 | 2000 | 2006 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLI vs VIS
XLI is the bigger fund and slightly cheaper, at 0.08% a year against 0.09% for VIS. It holds 81 stocks and puts 41% of its money in its top ten, with Caterpillar alone at 8.5%. VIS spreads across 397 stocks, with 31% in its top ten and Caterpillar at 5.3%. About 77% of their assets overlap. As of October 30, 2026, XLI returned 9.4% over one year and VIS 7.5%. Their worst drops that year were similar, at 12.2% and 12.5%. XLI may suit investors focused on the biggest names, and VIS those who want a broader spread.
VIS vs FIDU
These two are close to interchangeable. They share 352 stocks, and 95.6% of their assets overlap. FIDU tracks the MSCI USA IMI Industrials 25/25 Index with 361 holdings, while VIS tracks a benchmark of industrial stocks with 397. Both put about 31% in their top ten, led by Caterpillar at 5.3% to 5.4%. FIDU charges 0.084% a year and VIS 0.09%. As of October 30, 2026, both returned 7.5% over one year, and their worst drops were 12.3% for FIDU and 12.5% for VIS. VIS is the larger fund. Either may suit investors who want a broad, low-cost industrials fund.
XLI vs IYJ
The main difference is what each fund counts as industrial. IYJ's largest holdings are the payment networks Visa (7.2%) and Mastercard (5.5%), while XLI's largest is Caterpillar (8.5%). Only 59.4% of their assets overlap. XLI holds 81 stocks with 41% in its top ten, and IYJ holds 211 with 36%. IYJ costs 0.37% a year, against 0.08% for XLI. As of October 30, 2026, IYJ returned 6.4% over one year and XLI 9.4%, though IYJ's worst drop was slightly smaller (11.4% versus 12.2%). IYJ may suit investors who want payment companies included, and XLI those who want fewer stocks at lower cost.
How much do the largest broad industrials ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VIS and FIDU | 95.6% | 352 | |
| XLI and FIDU | 77.8% | 80 | |
| XLI and VIS | 77.2% | 81 | |
| VIS and IYJ | 70.7% | 156 | |
| FIDU and IYJ | 70.7% | 156 | |
| XLI and IYJ | 59.4% | 69 | |
| VIS and EXI | 56.8% | 82 | |
| XLI and EXI | 56.4% | 81 | |
| FIDU and EXI | 55.8% | 81 | |
| IYJ and EXI | 49.5% | 69 |
From each fund’s full holdings in its latest N-PORT report.
How have broad industrials ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad industrials ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLI Industrial Select Sector SPDR Fund | $33.96B | 0.08% | +0.3% | +8.8% | +9.4% | +21.3% |
| 2 | PSCI Invesco S&P SmallCap Industrials ETF | $183.7M | 0.29% | -0.6% | +8.6% | +8.7% | +21.4% |
| 3 | EXI iShares Global Industrials ETF | $1.44B | 0.38% | -2.7% | +8.0% | +8.2% | +22.5% |
| 4 | FIDU Fidelity MSCI Industrial Index ETF | $2.30B | 0.08% | -1.7% | +8.6% | +7.5% | +21.8% |
| 5 | VIS Vanguard Industrials ETF | $8.56B† | 0.09% | -1.8% | +8.4% | +7.5% | +21.9% |
| 6 | PRN Invesco Dorsey Wright Industrials Momentum ETF | $424.6M | 0.6% | -2.9% | +12.0% | +7.4% | +27.8% |
| 7 | RSPN Invesco S&P 500 Equal Weight Industrials ETF | $1.09B | 0.4% | +1.8% | +6.8% | +7.4% | +19.7% |
| 8 | FXR First Trust Industrials/Producer Durables AlphaDE… | $741.6M | 0.6% | +1.7% | +6.6% | +6.6% | +17.6% |
| 9 | IYJ iShares U.S. Industrials ETF | $1.94B | 0.37% | +0.2% | +6.6% | +6.4% | +19.2% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad industrials ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLI | -62.3% | -41.6% | -18.2% |
| VIS | not yet launched | not yet launched | -19.3% |
| FIDU | not yet launched | -41.7% | -19.2% |
| IYJ | -62.4% | -40.0% | -24.1% |
| EXI | -62.6% | -38.7% | -24.8% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad industrials ETFs?
Industrial companies sell big-ticket goods and services: machinery, aircraft, power equipment, freight hauling and construction work. Customers can put off these purchases when the economy weakens, so orders and profits tend to rise and fall more sharply than at companies selling everyday necessities. Interest rates matter because many buyers borrow to pay for equipment and projects. Commodity prices affect how much miners and farmers spend, and they are customers of makers such as Caterpillar and Deere. Government budgets set demand for defense contractors such as RTX and Lockheed Martin.
These swings have shown up in past sell-offs. XLI fell 62.3% in the 2008 financial crisis and 41.6% in the 2020 Covid crash, while the S&P 500 fell 55.2% and 33.7%. IYJ and EXI also lost more than 62% in 2008, and FIDU, IYJ and EXI lost between 38.7% and 41.7% in 2020. The 2022 bear market went differently. XLI fell 18.2%, FIDU 19.2% and VIS 19.3%, less than the S&P 500's 24.5%, while IYJ (24.1%) and EXI (24.8%) fell about as much as the index.
Broad industrials ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLI Industrial Select Sector SPDR Fund | 0.08% | $8 a year | $33.96B |
| 2 | FIDU Fidelity MSCI Industrial Index ETF | 0.08% | $8 a year | $2.30B |
| 3 | VIS Vanguard Industrials ETF | 0.09% | $9 a year | $8.56B |
| 4 | PSCI Invesco S&P SmallCap Industrials ETF | 0.29% | $29 a year | $183.7M |
| 5 | IYJ iShares U.S. Industrials ETF | 0.37% | $37 a year | $1.94B |
Ordinary funds with at least $10 million in net assets. The median ordinary broad industrials ETF charges 0.38% a year; leveraged and inverse funds usually charge more.
Do broad industrials ETFs pay dividends?
9 of the 11 ordinary broad industrials ETFs with a page here paid distributions over the last 12 months, with a median yield of 0.95%.
| Highest yields | Yield | Net assets |
|---|---|---|
| PSCI Invesco S&P SmallCap Industrials ETF | 1.48% | $183.7M |
| EXI iShares Global Industrials ETF | 1.13% | $1.44B |
| XLI Industrial Select Sector SPDR Fund | 1.12% | $33.96B |
| VIS Vanguard Industrials ETF | 0.95% | $8.56B |
| FIDU Fidelity MSCI Industrial Index ETF | 0.93% | $2.30B |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a broad industrials ETF
- Cost: from 0.08% to 0.99% a year. XLI (0.08%), FIDU (0.084%) and VIS (0.09%) cost the least, with PSCI next at 0.29%. IYJ and EXI charge 0.37% and 0.38%, FXR and PRN 0.60%, and HVAC 0.99%. Over decades, small fee gaps compound.
- How stocks are picked and weighted. Most large funds give bigger companies bigger weights, so XLI puts 41% in its top ten. RSPN weights its 81 stocks equally, and its top ten hold 14%. PRN holds 44 stocks chosen by price momentum, and FXR follows StrataQuant index rules.
- What counts as 'industrial' varies. IYJ's largest holdings are Visa and Mastercard, and FXR's include Accenture and PayPal. SHPP tracks a global supply-chain index led by SAP, ABB and Union Pacific. The holdings list shows what each fund really owns.
- US large, small or global. Most funds focus on US companies. PSCI tracks the S&P SmallCap 600 Capped Industrials Index of smaller US companies. EXI adds companies abroad, such as Siemens, so currency moves also affect its returns.
- Dividend income is modest and varies. As of October 30, 2026, PSCI yielded 1.48%, EXI 1.13%, XLI 1.12% and IYJ 0.67%. The median yield was 0.95%. A yield is a year's dividends as a share of the fund's price.
- Leveraged and inverse funds are different tools. DUSL seeks 3x, UXI 2x and SIJ -2x an industrials index's daily move. Daily resets make long-term results drift. As of October 30, 2026, UXI gained 8.8% over a year, less than XLI's 9.4%, and DUSL lost 2.9%.
What are the risks of broad industrials ETFs?
- The same few giants in many funds. Nine of the 14 funds hold Caterpillar, and it makes up 8.5% of XLI. General Electric, GE Vernova and RTX also rank near the top of the largest funds, so a setback at one company can hit many funds at once.
- Deeper falls than the market in recessions. Customers cut big purchases in recessions. In the 2008 financial crisis, XLI, IYJ and EXI each lost more than 62%. In the 2020 Covid crash, XLI and FIDU lost about 42%. The S&P 500 fell 55.2% and 33.7%.
- Momentum and niche funds swing harder. In the year to October 30, 2026, the momentum fund PRN had volatility (how widely its price swung) of 34.6%, against 16.6% for XLI. Its worst drop was 27.4%, against 12.2%. HVAC fell 20.7% year to date.
- Leveraged and inverse funds reset daily. DUSL, UXI and SIJ reset their 3x, 2x and -2x targets every day, so over longer periods their results drift from those multiples. In the year to October 30, 2026, DUSL's worst drop was 33.7% and SIJ's was 38.9%.
- Tiny funds can close. SHPP had about $2.1 million in net assets and HVAC about $16 million. Funds this small can trade with wider price gaps. If one closes, holders are paid out in cash, which can trigger taxes in taxable accounts.
Leveraged and inverse broad industrials ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad industrials ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLI Industrial Select Sector SPDR Fund | $33.96B | 0.08% | 1.12% | +8.8% | +9.4% | +11.5% |
| 2 | VIS Vanguard Industrials ETF | $8.56B† | 0.09% | 0.95% | +8.4% | +7.5% | +11.6% |
| 3 | FIDU Fidelity MSCI Industrial Index ETF | $2.30B | 0.08% | 0.93% | +8.6% | +7.5% | +11.7% |
| 4 | IYJ iShares U.S. Industrials ETF | $1.94B | 0.37% | 0.67% | +6.6% | +6.4% | +8.3% |
| 5 | EXI iShares Global Industrials ETF | $1.44B | 0.38% | 1.13% | +8.0% | +8.2% | +10.8% |
| 6 | RSPN Invesco S&P 500 Equal Weight Industrials ETF | $1.09B | 0.4% | 0.88% | +6.8% | +7.4% | — |
| 7 | FXR First Trust Industrials/Producer Durables AlphaDE… | $741.6M | 0.6% | 0.78% | +6.6% | +6.6% | +8.1% |
| 8 | PRN Invesco Dorsey Wright Industrials Momentum ETF | $424.6M | 0.6% | 0% | +12.0% | +7.4% | +13.5% |
| 9 | PSCI Invesco S&P SmallCap Industrials ETF | $183.7M | 0.29% | 1.48% | +8.6% | +8.7% | +12.7% |
| 10 | DUSL Direxion Daily Industrials Bull 3X Shares Leveraged | $56.5M | 0.97% | 0.32% | +10.7% | -2.9% | +13.3% |
Questions investors ask about broad industrials ETFs
What is the largest industrials ETF?
The Industrial Select Sector SPDR Fund (XLI) is the largest. It has about $34 billion in net assets, out of roughly $50.8 billion across the 14 industrials ETFs in this guide. Vanguard Industrials ETF (VIS) is second at about $8.6 billion, followed by FIDU, IYJ and EXI. Together those five hold 95% of the money in the group. XLI launched in December 1998 and tracks the Industrial Select Sector Index.
What is the cheapest industrials ETF?
XLI has the lowest expense ratio, at 0.08% a year. The expense ratio is the yearly fee, taken out of the fund's assets. FIDU at 0.084% and VIS at 0.09% are nearly tied with it. PSCI, which holds smaller companies, charges 0.29%, and IYJ charges 0.37%. The middle fund in the group charges 0.40%, and the most expensive, HVAC, charges 0.99%.
XLI vs VIS: what is the difference?
Both are low-cost index funds, but XLI is more concentrated. XLI holds 81 stocks, with 41% in its top ten and Caterpillar at 8.5%. VIS holds 397, with 31% in its top ten and Caterpillar at 5.3%. About 77% of their assets overlap. XLI charges 0.08% a year and VIS 0.09%. As of October 30, 2026, XLI returned 9.4% over one year and VIS 7.5%. Over five years they were nearly even, at 11.5% and 11.6% a year.
Do industrials ETFs pay dividends?
Most do, but the yields are modest. Nine of the 11 funds with yield figures available paid dividends, and the median yield was 0.95% as of October 30, 2026. A yield is a year of dividends as a share of the fund's price. PSCI, which holds smaller companies, had the highest yield at 1.48%, followed by EXI at 1.13% and XLI at 1.12%. IYJ yielded 0.67%.
Which industrials ETFs hold Caterpillar?
Nine of the 14 funds hold Caterpillar, tied with GE Vernova as the most widely held stock. It is the largest holding in XLI (8.51%), VIS (5.33%), FIDU (5.4%) and EXI (4.8%). It also makes up 4.43% of IYJ and 5.02% of HVAC, and the leveraged DUSL and UXI hold it too. Across the funds that own it, the median weight is about 4.9%.
How many industrials ETFs are there?
This guide counts 14 US-listed industrials ETFs. Eleven are ordinary funds: XLI, VIS, FIDU, IYJ, EXI, RSPN, FXR, PRN, PSCI, HVAC and SHPP. Three are leveraged or inverse trading funds: DUSL, UXI and SIJ. The funds vary widely in size. XLI holds about $34 billion, while SHPP holds about $2.1 million and HVAC, launched in February 2025, holds about $16 million.
What are leveraged and inverse industrials ETFs?
They are trading tools that use derivatives to multiply an index's daily move. DUSL seeks 3x and UXI 2x the daily return of an industrials index. SIJ seeks -2x, so it gains when industrial stocks fall. Because they reset each day, results over months can differ sharply from those multiples. As of October 30, 2026, DUSL lost 2.9% over one year and UXI gained 8.8%, while XLI gained 9.4% and SIJ lost 15.9%.
Does Vanguard have an industrials ETF?
Yes. Vanguard Industrials ETF (VIS) is the second-largest fund in the group, with about $8.6 billion in net assets, and it charges 0.09% a year. It is an exchange-traded share class of Vanguard Industrials Index Fund. It holds 397 stocks, led by Caterpillar (5.33%), General Electric (5.04%) and RTX (4.01%). Its closest twin is Fidelity's FIDU: 95.6% of their assets overlap, and both returned 7.5% over the year to October 30, 2026.
Is there a Vanguard, Fidelity or Schwab industrials ETF?
Yes. Vanguard offers one: VIS (Vanguard Industrials ETF). Fidelity offers one: FIDU (Fidelity MSCI Industrial Index ETF). Schwab doesn’t have a industrials ETF.
